The rental market is booming, increasing the importance for landlords to know what the average letting agent fees are across the country.

With changes in legislation concerning tenant fee bans & offsetting mortgage costs and the BREXIT doom and gloom, keeping on top of fees is critical to maintaining a profitable property portfolio.

If letting agent costs are too high, profits from a rental property can be quickly eaten up

The letting agent fees you pay will depend on how hands you want to be with your rental property.

Some landlords just want their agent to find them tenants. Whereas other landlords want agents to take on inspections, maintenance, inventories and a whole lot more.

1. The best letting agent near you

2. Average letting agent fee calculator

3. Types of letting agent fees

4. Letting agent fees in London

5. Letting agent fees outside of London

6. Average online letting agent fees

7. Rental yield data for landlords

 

1. The best letting agent near you

 

If you have a property in England, the below analysis will be useful for understanding average fees letting agents are charging. Furthermore, you can see precise fees agents are charging in your area. In

Every town is different and so are the letting agent fees landlords will face, so finding the best letting agent is always simple. Rent Round allows landlords to compare letting fees of agents near a landlords rental property. 

A quick comparison shows % letting agents charge for tenant find, full management & guaranteed rent services.

Type in your post code to see letting agents near you. We will also show you letting agent ratings and distance from your property.

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marta wonder

I got the best priced agent in my area with all the services I wanted. Using Rent Round I could see all the local agents in my area after just putting in my postcode.

Marta Wonder

I got the best agent in my area with all the services I wanted. Using Rent Round I could agent fees, ratings and best of all how far the agent is from my rental property, plus it’s free to use!

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2. Average letting agent fee calculator

Wherever your property is in the country, the below calculator will give you an idea of the average letting agent fees in your city. Simply enter the city your property has and the number of rooms.

The calculator will work out the expected rent you should expect based on national averages. You’re also able to see an estimation of your take home profit after letting agent fees, tax & bills.

 

3. Types of Letting Agent Fees

There are many types of fees rental agents charge landlords. This will be dictated by the services the landlord is looking for. The fees are generally broken down into the following groups

Letting agent tenant find fees

This fee is for the cost of advertising your property, answering tenant queries, conducting property viewings and creating the tenancy agreement. Depending on the agents terms and your agreement with them, this service can also include the ongoing rent collection for that tenant.

Letting agent fully management fees

This services goes over an above finding the tenant and is usually taken up by landlords looking for a hands off approach. The letting agent will in addition manage the property inspections, documentation, maintenance and for sure the ongoing rent collection.

Letting agent add on fees

There are a host of other activities that the letting agent can charge additional fees for. These include, but are not restricted to:

  • Premium advertising
  • Guaranteed rent policies
  • Bill payment processing
  • Tenancy renewal fees

As a landlord, you should always read the small print and understand what services are included and what you may be charged more for.

Guaranteed rent fees

This type of service is for landlords looking for a risk averse approach, by securing their rental income against a policy.  In the event that a tenant cannot (or won’t) pay their rent, the policy undertaken secures the income.  After a certain amount of time of unpaid rent, the policy will kick in and a landlord gets their payment.

Every policy differs. Some require a landlord to wait a few weeks or even months. On the other hand some policies pay out as soon as a payment is missed. Landlords using this service can get a peace of mind knowing any mortgage payments or bills aren’t at risk of a tenant not paying their rent.

There is a higher cost of this service, which means a landlord’s monthly income will take a hit. During the Covid-19 pandemic, landlord searches for guaranteed rent increased by 25%. In the midst of tenant arrears & eviction bans, it’s clear landlords were keen to get coverage from themselves. However many agents pulled back their offering of guaranteed rent.

Many agents couldn’t find a provider to underwrite this type of services as arrears across the country increased.happy tenant

4. Letting agent fees in London

Finding a tenant, essentially involves posting a property on one of the leading portal sites. From there, tenant leads are generated as interest in the property is created.

Depending on the agent, a tenant find fee includes answering inquiries and conducting viewings. Following which, again depending on the agent, the service will include the drawing up of tenancy agreements, collecting the first rent & handover the keys to the property.

However online rental agents usually differ to the above offering. With an online rental agent, landlords can expect lower fees. With the lower fees landlords are expected to do more work, the most time intensive of which is conducting viewing themselves.

Letting agent fees for finding a tenant in London

The below table shows how much a letting agent in London will charge for finding a tenant. The structure of how an agent will charge a landlord differs.

Some prefer an ongoing monthly fixed fee or % of the rental income. While other charge a flat one off fee at the beginning of the tenancy.

Letting agent name Fees charged Fee structure Fees paid on £1,000 monthly rent (per annum)
LettingaProperty.com £149 One off £149
Accommodation.co.uk 4% pcm £480
Hunter Ashley Sales & Lettings £395 One off £395
Base property specialists 10% pcm £1,200
Home Made £948 One off £948
Hanson Estates 50% Of first months rent £500
J Property Management Limited £400 One off £400
99home £99 One off £99
Cole Harding 6% pcm £720
Markeves Estates 6% pcm £720
Haart 100% Of first months rent £1,000
Marybow 10% pcm £1,200
Mark Hart Real Estate 6% pcm £720
Venndor Properties £899 One off £899
Drury Estates 9% pcm £1,080

Based on the data, there are huge variances between what fees are charged. The cheapest agent to find a tenant is 99home. Whereas the most expensive, based on a monthly rental income of £1,000 is Marybow and Base property specialists. However it’s not always that simple.

Marybow & Base property services focus on a small region within London, whereas 99home is nationwide. As a result, these 2 agents are likely to have distinct, niche knowledge of their area – for some landlords this may result in a better service for their particular property. There are a number of agents charged a fixed one off fee for finding a tenant for a property in London. This may be an advantage for landlords with property with a large rental income. 

For properties generating a monthly income of £3,000+ per month in rent, forking out 10%, £300 a month in tenant find fees can be costly. A fixed fee in this example may be the best course of action to take.  

Letting agent fees for full property management in London

Full property management is often a service landlords with a lack of experience or wish for a hands off buy to let property income. The fees are higher than finding a tenant due to the additional activity involved that the agent has to undertake. 

As with fees for finding a tenant, letting agents will charge based on varying sets of fee structures.  

Letting agent name Fees charged Fee structure Fees paid on £1,000 monthly rent (per annum)
LettingaProperty.com £99 pcm £1,188
Accommodation.co.uk 12% pcm £1,440
Hunter Ashley Sales & Lettings 9% pcm £1,080
Base property specialists 15% pcm £1,800
Home Made 4% pcm £480
Hanson Estates 10% pcm £1,200
J Property Management Limited 8% pcm £960
99home £85 pcm £1,020
Cole Harding 10% pcm £1,200
Markeves Estates 12% pcm £1,440
Haart 14.40% pcm £1,680
Marybow 12.00% pcm £1,440
Mark Hart Real Estate 11% pcm £1,320
Venndor Properties £799 One off £799
Drury Estates 14% pcm £799

 

Home-Made really offer a competitive deal when it comes to full management fees in London, charging just 4% per calendar month.

On a rental income of £1,000, Home-Made would be charging £480 per year. As always there are a number of agents charging fixed fees for managing a property.

Venndor charge an attractive £799 as a one off payment for full management. This could be attractive to landlords looking for the lowest priced letting agent.  

Letting agent fees for guaranteed rent in London

At the turn of the year 2020, near enough every agent had a guaranteed rent package available for landlords. However due to the rental arrears and additional risk Covid-19 has caused, many agents have been forced to pull back this type of service. This leaves landlords worried about the security of their rental income exposed.

However there are a few letting agents still open to providing this service. 99home have a rent guarantee package available at £85 per calendar month. With the scarcity in the market, this is proving a highly sought service from the nationwide letting agent

So who is the best letting agent in London?

Picking the best letting agent isn’t always simple. The cheapest doesn’t mean the best and the agent that will do the most for your property may not be cost effective enough for your aims.

Looking at how quickly an agent lets out your property and what rent they achieve, can be another good indicator to look at when picking your letting agent.

Take a look below and see which agents get the most rent and their timeframes to get your property rented out. Remember this data always fluctuates.

Letting agent name Average monthly rent obtained
Average listing time (weeks)
Accommodation.co.uk £1,543 4
Hunter Ashley Sales & Lettings £1,183 2
Base property specialists £1,963 6
Home Made £1,855 8
Hanson Estates £1,330 8
J Property Management Limited £702 15
99home £1,213 11
Cole Harding £2,119 14
Markeves Estates £2,002 2
Venndor Properties £1,057 15
Drury Estates £1,998 20

 

For a more accurate view, run a letting agent comparison on our homepage.  At the current time of writing Markeves and Hunter Ashley are the quickest letting agents in London on Rentround at renting out a property, with an average of 2 weeks.

Markeves in this instance looks particularly favourable, as its 2nd in the rankings for achieving the highest amount of rent, it an average of £2,002 per calendar month. The top spot of achieving the highest rent goes to Cole Harding. Operating mostly in North London, the agent on average achieves a rental income of £2,119.

 

5. Letting agent fees outside of London

If you want to compare letting agents in your area, use our comparison tool to get an understanding of agent fees & performance near you. We’ve also included some further data below on letting agents covering Birmingham, Yorkshire, Manchester & Liverpool.

Fees for finding a tenant in Birmingham

Letting agent name Fees charged Fee structure
Fees paid on £1,000 monthly rent (per annum)
Accommodation.co.uk
4% pcm £480
Open House Birmingham
£199 One off £199
Click Lettings and Sales
50% 1st months rent £500
ROUDS £99 One off £99
Open House Edgbaston
£245 One off £245
Empire Lettings & Property Management Ltd 12% pcm £1,440
Shape Lettings LTD
£450 One off £450
MAK Estates £395 One off £395
JustMove £150 One off £150

 

Fees for finding a tenant in Manchester

Letting agent name Fees charged Fee structure Fees paid on £1,000 monthly rent (per annum)
Accommodation.co.uk 4% pcm £480
Kirn Estates Ltd £395 One off £395
Clear Choice Properties £150 One off £150
The Lettings Cloud £195 One off £195
X1 Lettings Full management only
Ellenbrook Estates Ltd 10% pcm £1,200
Brentwood Lettings 10% pcm £1,200

 

Fees for finding a tenant in Leeds

Letting agent name Fees charged Fee structure
Fees paid on £1,000 monthly rent (per annum)
Accommodation.co.uk
4% pcm £480
Yorkshire Letting Agency
80% 1st months rent £800
Linley & Simpson 75% 1st months rent £750
Stoneacre Properties
£250 One off £250
X1 Lettings Full management only
Butlers Estate Agents Ltd £345 One off £345

 

Fees for finding a tenant in Liverpool

Letting agent name Fees charged Fee structure
Fees paid on £1,000 monthly rent (per annum)
Accommodation.co.uk 4% pcm £480
Apropos £150 One off £150
Dep Property Solutions £350 pcm £350
Northwood Wirral 100% 1st months rent £1,000
X1 Lettings Full management only
Enviro Estates 10% pcm £1,200
Amazon Management Services Ltd. £210 One off £210

 

Full management fees in Birmingham

Letting agent name Fees charged Fee structure Fees paid on £1,000 monthly rent (per annum)
Accommodation.co.uk
12% pcm £1,440
Open House Birmingham
£35 pcm
Click Lettings and Sales
10% pcm £1,200
ROUDS 7% pcm £840
Open House Edgbaston
8% pcm £960
Empire Lettings & Property Management Ltd 12% pcm £1,440
Shape Lettings LTD
10% pcm £1,200
MAK Estates 8% pcm £960
JustMove 9% pcm £1,080

 

Full management fees in Manchester

Letting agent name Fees charged Fee structure Fees paid on £1,000 monthly rent (per annum)
Accommodation.co.uk 12% pcm £1,440
Kirn Estates Ltd 12% pcm £1,440
Clear Choice Properties 8% pcm £960
The Lettings Cloud 9% pcm £1,080
X1 Lettings 8% pcm £960
Ellenbrook Estates Ltd 10% pcm £1,200
Brentwood Lettings 10% pcm £1,200

 

Full management fees in Liverpool

Letting agent name Fees charged Fee structure Fees paid on £1,000 monthly rent (per annum)
Accommodation.co.uk 12% pcm £1,440
Apropos 12% pcm £1,440
Dep Property Solutions 12% pcm £1,440
Northwood Wirral 13% pcm £2,246
X1 Lettings 8% pcm £1,382
Enviro Estates 15% pcm £2,592
Amazon Management Services Ltd. 8% pcm £2,157

Full management fees in Leeds

Letting agent name Fees charged Fee structure
Fees paid on £1,000 monthly rent (per annum)
Accommodation.co.uk
12% pcm £1,440
Yorkshire Letting Agency
8% pcm £960
Linley & Simpson 15% pcm £1,800
Stoneacre Properties
7% pcm £840
X1 Lettings 8% pcm £960
Butlers Estate Agents Ltd 9% pcm £1,080

So who is the best letting agent across the big cities?

Being title ‘the best letting agent’ is very subjective. Some agents may call themselves the best letting agent based on being the biggest.

Others may point to their ‘impartial’ awards they’d received over the years. While it’s for every landlord to decide who is the best letting agent for themselves, below is some performance data to help that decision. Remember if you’re looking for a letting agent when renting out your property, run a search using our agent comparison tool.  

 

Letting agent name Average rent obtained Average time to rent out a property City
Accommodation.co.uk
£1,543 4 Birmingham
Open House Birmingham
£1,153 6 Birmingham
Click Lettings and Sales
£780 7 Birmingham
ROUDS £611 4 Birmingham
Open House Edgbaston
£1,153 6 Birmingham
Empire Lettings & Property Management Ltd £594 16 Birmingham
Shape Lettings LTD
£563 3 Birmingham
MAK Estates £936 4 Birmingham
JustMove £685 6 Birmingham
Yorkshire Letting Agency
966 8 Leeds
Linley & Simpson 910 3 Leeds
Stoneacre Properties
800 2 Leeds
X1 Lettings 464 4 Leeds
Butlers Estate Agents Ltd 594 5 Leeds
Kirn Estates Ltd £923 1 Manchester
Clear Choice Properties
£910 3 Manchester
The Lettings Cloud
£810 1 Manchester
Ellenbrook Estates Ltd £594 5 Manchester
Brentwood Lettings
£594 5 Manchester
Apropos 923 1 Liverpool
Dep Property Solutions
652 3 Liverpool
Northwood Wirral 529 7 Liverpool
Enviro Estates 470 6 Liverpool
Amazon Management Services Ltd.
628 9 Liverpool

6. Average Online letting agent fees

To get a fair view in this modern day, you need to consider online letting agents when trying to get a sense of what an agent may charge you.

Online letting agents aren’t for everyone, the expectation is the landlord would need to do more work than they would need to do under a ‘normal’ agent.

However no doubt, there are big savings landlords can make when getting an online agent to rent out their property. Some agents charge just double figure to find a tenant – a big difference to being charged an entire months rent to find a tenant, which some traditional agents charge.

The below table outlines how much online letting agents charge.

  

 

Online letting agent

Tenant Find

Key information

purple bricks fees
£1,050

The most expensive online letting agent. However the package includes viewings.

Rent Collection Type Services: £145pcm + £950 one off fee

Fully Managed is priced at 9.2% pcm + £850 (one off fee)

theonlinelettingagents
£129

No frills service, landlord does the viewings

Rent Collection Type Services: £149pcm + £950 one off fee

Fully Managed: £5%pcm + £99 (one off fee)

upad letting fees
£298

A few advertising packages, basic rent collection not offered, so keep that in mind for the long term

Discounts offered on multiple properties

Fully Managed: £72pcm + £599 (one off fee)

open rent2
£49

The bare basics offered under this package

Fee includes 3 months advertising to find a tenant on the biggest portals

Fully Managed not on offer.

letting-a-property fees
£149

Rent collection Type Services: £49pcm + £149 one off fee

Fully managed will cost you £89 + £149 one off fee

rent my home
£99

Rent collection offered as part of the fully managed service.

Fully managed fee is 6% of rental income pcm

99home letting agent
£49

You save £50 if you select the tenant find option with just 1 reference

Fully Managed is based on £85 pcm, one of the cheapest

howsy letting fees

£99

There is a free tenant find option but it’s pretty basic.

Fully Managed £65pcm

 

 

6. Average rental yields in the UK

As we’re a helpful bunch at Rentround, we’ve also included some data on average rental yields across various postcodes in the UK. 

The yield data will hopefully help you judge how much your own yield should be depending on your location. Your actual yield will depend on your purchase price etc. But the trend column we’ve included will help you understand if there’s scope for you to look into increasing your rent due to recent location fluctuations. 

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marta wonder

I got the best priced agent in my area with all the services I wanted. Using Rentround I could see all the local agents in my area after just putting in my postcode.